LOEWS CORP (L) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:L - US5404241086 - Common Stock
102.3 USD
-0.38 (-0.37%)
102.3 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to L. L was compared to 148 industry peers in the Insurance industry. There are concerns on the financial health of L while its profitability can be described as average. L does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- L had positive earnings in the past year.
- In the past year L had a positive cash flow from operations.
- L had positive earnings in 4 of the past 5 years.
- L had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- L's Return On Assets of 1.69% is in line compared to the rest of the industry. L outperforms 46.62% of its industry peers.
- Looking at the Return On Equity, with a value of 7.94%, L is doing worse than 66.89% of the companies in the same industry.
- With a Return On Invested Capital value of 2.18%, L perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- L had an Average Return On Invested Capital over the past 3 years of 2.05%. This is significantly below the industry average of 14.94%.
- The last Return On Invested Capital (2.18%) for L is above the 3 year average (2.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 7.94% | ||
| ROIC | 2.18% |
ROA(3y)1.54%
ROA(5y)1.08%
ROE(3y)7.72%
ROE(5y)5.34%
ROIC(3y)2.05%
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 7.93%, L is in line with its industry, outperforming 49.32% of the companies in the same industry.
- In the last couple of years the Profit Margin of L has grown nicely.
- With a Operating Margin value of 12.88%, L perfoms like the industry average, outperforming 52.03% of the companies in the same industry.
- In the last couple of years the Operating Margin of L has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.88% | ||
| PM (TTM) | 7.93% | ||
| GM | N/A |
OM growth 3Y-9.39%
OM growth 5Y2.96%
PM growth 3Y-8.85%
PM growth 5Y5.2%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so L is destroying value.
- Compared to 1 year ago, L has less shares outstanding
- The number of shares outstanding for L has been reduced compared to 5 years ago.
- Compared to 1 year ago, L has an improved debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of L is 3.11, which is a good value as it means it would take L, 3.11 years of fcf income to pay off all of its debts.
- L has a Debt to FCF ratio (3.11) which is in line with its industry peers.
- L has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
- L's Debt to Equity ratio of 0.46 is on the low side compared to the rest of the industry. L is outperformed by 64.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | N/A |
ROIC/WACC0.3
WACC7.32%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- L shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.37%.
- Measured over the past years, L shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.42% on average per year.
- Looking at the last year, L shows a small growth in Revenue. The Revenue has grown by 6.33% in the last year.
- L shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.32% yearly.
EPS 1Y (TTM)-8.37%
EPS 3Y2.23%
EPS 5Y13.42%
EPS Q2Q%33.52%
Revenue 1Y (TTM)6.33%
Revenue growth 3Y6.13%
Revenue growth 5Y3.32%
Sales Q2Q%4.59%
3.2 Future
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 14.83, the valuation of L can be described as correct.
- L's Price/Earnings ratio is in line with the industry average.
- L is valuated rather cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.83 | ||
| Fwd PE | N/A |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as L.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of L is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.95 | ||
| EV/EBITDA | 10.21 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.1
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a yearly dividend of 0.24%, L is not a good candidate for dividend investing.
- L's Dividend Yield is slightly below the industry average, which is at 2.41.
- Compared to an average S&P500 Dividend Yield of 1.82, L's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
5.2 History
- The dividend of L decreases each year by -0.02%.
- L has been paying a dividend for at least 10 years, so it has a reliable track record.
- L has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.02%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
- L pays out 3.58% of its income as dividend. This is a sustainable payout ratio.
DP3.58%
EPS Next 2YN/A
EPS Next 3YN/A
LOEWS CORP / L FAQ
What is the fundamental rating for L stock?
ChartMill assigns a fundamental rating of 3 / 10 to L.
Can you provide the valuation status for LOEWS CORP?
ChartMill assigns a valuation rating of 2 / 10 to LOEWS CORP (L). This can be considered as Overvalued.
Can you provide the profitability details for LOEWS CORP?
LOEWS CORP (L) has a profitability rating of 4 / 10.
Can you provide the dividend sustainability for L stock?
The dividend rating of LOEWS CORP (L) is 4 / 10 and the dividend payout ratio is 3.58%.